[3802] Trust capital gains

Title Draft Taxation Determination Income tax: is the source concept in Division 6 of Part III of the Income Tax Assessment Act 1936 (Division 6) relevant in determining whether a non-resident beneficiary of a resident trust (or trustee for them) is assessed on an amount of trust capital gain arising under Subdivision 115–C of the Income Tax Assessment Act 1997?

Registered 6 September 2016

Purpose The draft Determination will set out proposed clarification on the taxation treatment of capital gains for a non-resident beneficiary or trustee of a resident trust.

Expected completion To be advised

Comments Targeted consultation has now ended. We are considering comments and issues raised which will be taken into account in developing the draft Determination.

[3803] Capital gain from a non-resident beneficiary of a non-fixed trust

Title Draft Taxation Determination Income tax: does Subdivision 855–A (or subsection 768–915(1)) of the Income Tax Assessment Act 1997 (ITAA 1997) disregard a capital gain that a foreign-resident (or temporary resident) beneficiary of a resident non-fixed trust makes because of the operation of subsection 115–215(3)?

Registered 6 September 2016

Purpose The draft Determination will set out proposed clarification on the taxation treatment of capital gains from non-taxable Australian property assets of a non-fixed trust.

Expected completion To be advised

Comments Targeted consultation has now ended. We are considering comments and issues raised which will be taken into account in developing the draft Determination.

[3936] Disposal of dwellings acquired from a deceased estate

Title Final Practical Compliance Guideline The Commissioner's discretion to extend the two year period to dispose of dwellings acquired from a deceased estate

Registered August 2018

Purpose The final Guideline will outline the factors we will consider when deciding whether to allow a longer period for trustees or beneficiaries of deceased estates to sell a dwelling acquired from the estate. The Guideline will also set out a ‘safe harbour’ compliance approach.

[3953] Back-to-back CGT roll-overs

Title Draft Taxation Determination Capital gains tax: if a CGT roll-over contains a condition that entities who own interests can acquire or receive 'nothing else', can the condition be satisfied if, after the transaction for which that CGT roll-over is sought, another transaction is planned to happen under which the same entities will acquire or receive something?

Registered November 2018

Purpose The draft Determination will set out proposed guidance on sequential planned transactions where a CGT roll-over is claimed for each transaction and the first roll-over contains a 'nothing else' condition.

[3959] CGT cost base – rental property

Title Draft Practical Compliance Guideline Calculation of CGT cost base for a rental property and balancing adjustment amounts for depreciating assets in the rental property where depreciation has either been claimed or disallowed

Registered November 2018

Purpose The draft Guideline will provide proposed practical guidance in the situation where a rental property is sold and depreciation has been claimed.

[3964] Appointment of capital – CGT events E5 or E7

Title Draft Taxation Determination Does CGT event E5 or E7 happen if the trustee of a discretionary trust appoints an amount of capital to a beneficiary (eg by special resolution) and later makes a capital distribution in Australian currency in satisfaction of the appointed interest?

Registered February 2019

Purpose The guidance will set out the Commissioner’s proposed view on the CGT consequences of:

appointing an amount of capital to a beneficiary

the subsequent distribution of Australian currency to the beneficiary in satisfaction of the capital interest.

[3966] Unit trust – CGT events E5 to E8

Title Draft Taxation Determination What is the meaning of the term ‘unit trust’ in CGT events E5 to E8, and what are the interaction implications for other CGT events, in particular CGT events E4 and C2?

Registered February 2019

Purpose The guidance will set out the Commissioner’s proposed view on:

[3968] Small business concessions – active asset test

Title Final Taxation Determination Income tax: can a company that carries on a business in a general sense as described in TR 2019/1 but whose only activity is renting out an investment property claim the CGT small business concessions in relation to that investment property?

Registered March 2019

Purpose The final Determination will provide advice that a company that carries on a business in a general sense, but whose only activity is renting out an investment property cannot claim the CGT small business concessions.

Expected completion To be advised

CommentsDraft TD 2019/D4 published on 5 April 2019. Comments period closes on 10 May 2019.

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